It turns out that all my issues stem from the fact I have a USB microphone connected to my Xbox 360. Somehow microphone registration gets all screwy because of that. In my case, I have my Rock Band microphone plugged into the Xbox 360 at all times. The fix is to unplug the USB microphone when you’re playing Lips. Apparently this will fix both the 2nd microphone lighting issues as well as the static noise, video and audio out of sync issues, as well as the freezing issues.
Other good news is that Harmonix (creator of Rock Band) is going to patch up Rock Band so it can use the wireless microphones! From MTV Games:
We broke the news that the highly regarded microphone bundled with Microsoft’s “Lips” karaoke game would not work with “Guitar Hero” or “Rock Band” at launch.
Harmonix and MTV Games have now addressed gamers’ concern over the lack of compatibility, and there’s good news to be shared.
“Microsoft and MTV Games are working together to ensure that consumers will be able to use the wireless mics from ‘Lips’ with ‘Rock Band 2’ after launch,” said the companies in an e-mailed statement. “More details on timing to come. Harmonix and MTV Games strive for all third-party controllers to work with the ‘Rock Band’ games, fitting with Harmonix’ open-platform philosophy for controllers.”
Sounds like we’ll have a patch in the coming weeks! Will you use the “Lips” mic?
That’s great news! Being able to play Rock Band with a wireless microphone would be neat! Then I can scrap my Rock Band microphone and not hit into these issues anymore!